The current year 2021 has been quite a rollercoaster ride for industries. Some markets are still recovering from the lockdowns and recessions in 2020. On the other hand, health and wellness continue to receive continual growth. The cannabis market, specifically CBD, is growing at an expansive rate as CBD is gradually making it into mainstream markets.
You will find a CBD product almost everywhere, right from a dispensary shelf to a common ingredient in beauty products. As companies are making fair use of the therapeutic benefits of CBD, there is a high probability of witnessing a boom in investment and growth of the industry. Which, in turn, will pave the way for some groundbreaking innovations too. Let us explore the CBD industry’s anticipated trends and what they can bring for investors and innovators.
1. CBD As A Fastest-growing Industry
Presently CBD is legal in many parts of the world. The alternative uses of CBD as a medical compound were more of a consumer-driven wave. Surprisingly it was a bottom-up approach where users advocated the products through various media channels. It was later that the scientific investigations started pouring in, clarifying the potential benefits of the compound. As the stigma around the use began fading away, the industry experienced a massive influx of users.
So after years of trials, CBD as a legit medication has got social acceptance and has made it into the list of valuable compounds. Also, FDA approval for its usage in treating specific conditions has become a significant factor in diminishing consumer scepticism. Not only for human use, but CBD is also equally popular among pet owners. People now buy CBD for their cats and dogs from legit sources to help treat conditions like pain, anxiety and arthritis. As more users jump on the CBD bandwagon, the industry is experiencing steady growth. Read more to get all the details about it.
CBD appeals as a holistic wellness product; it has penetrated large-scale sectors like the fitness, wellness, and beauty industry. So, the opportunity cascaded for investors to deploy maximum investment in rapidly growing markets, and the industry continued to flourish.
2. More to Product Innovation and Online Market
CBD has become an evident popular adieu to its therapeutic properties. In places where it was challenging to source products, the online market has bridged gaps. End-users can now access high-quality products directly from the manufacturers. There is a consistent demand for sophisticated products.
The online marketing restriction and advertising control did not deter the online growth of the CBD industry. Marketers are coming up with innovative product designs that appeal to specific segments of consumers. The micro-niches emerged in the past couple of years, and investors are yet to exploit them in 2021.
- CBD as a fitness supplement
- CBD lubricants and ointments
- CBD for pets
- CBD to treat specific Diseases
The innovative advertisement methods such as influencer marketing and value creation through information and blogs have been a driving force in creating long-term customer value, which ultimately pours into sales.
CBD vaping industry is another sector that appeals to the youth crowd. CBD allures a varied customer base. With a steady CAGR of 21.2%, the industry expects stable distribution channels in the future. With each category, CBD is alluring a broader customer base, creating a solid foothold in multiple sectors.
The latest payment mode advancements, such as cryptocurrency and blockchain, have diminished CBD’s financial risk. Now buyers can buy, sell, move cash and invest in the cannabis sector without government speculation. Alternative banking options and financial aids have revolutionized the CBD industry, and the trend will continue to grow.
3. Future Scope in Research And Development
CBD interacts with the innate endocannabinoid system in a unique way which brings several benefits to humans. The CBD industry is at its nascent stage, which leaves scope for research and development. Most of the scientific work in the CBD sector is either animal study or secondary studies. There is a lot of range for its preliminary studies and clinical trials in treating conditions like stress, pain, and inflammation management.
The success of the present-day market players and tremendous industry growth signifies that users cannot get enough CBD products and has more scope. Chances of product development are suitable for CBD as it has a strong product profile of anti-oxidants, terpenes, and minerals that appeals to the masses. Besides this, the latest developments such as nanoencapsulation of CBD have propelled beverage industries to open new commercializing avenues.
4. Fewer Restrictions Means More Growth
The past couple of years mainly were about state-specific rules. Although FDA approves free use of hemp-driven CBD, legalization measures at the federal level are unclear. With uniform laws, there will be less black marketing and illegal practices.
The increasing interest from Congress is a wave of good news for the industry. Experts believe that the latest changes in the White House can be significant for the cannabis industry. President Biden’s promise to reschedule cannabis leave canna lovers in high hopes. If CBD potential meets government support, the industry will be home to innovation and growth.
The Bottom Line
Legalization and technological advancements are coherently working to bring growth to the CBD industry. Despite global turbulences, the CBD industry shows optimistic projections. So experts categorize it as a ‘recession-proof industry. However, the much-deserved growth of the CBD sector is possible only after legal reforms and investment in R&D. Following recent developments, it is pretty likely that CBD will continue to grow in the future.